Mortgage Calculator

Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI. See your amortization schedule and payoff date.

Mortgage Details

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Optional Costs
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Private Mortgage Insurance (if down payment < 20%)
Additional payment toward principal

Payment Summary

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Monthly Payment
Principal & Interest—
Property Tax—
Home Insurance—
PMI—
Extra Payment—
Total Monthly Payment—
Loan Amount—
Total Interest—
Total Payments—
Payoff Date—

Loan Breakdown

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Principal
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Interest
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Taxes & Insurance
Payment Progress0 payments

Amortization Schedule

Payment #DatePaymentPrincipalInterestTaxes & InsurancePMIBalance
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Understanding Your Monthly Mortgage Payment (PITI)

A complete home loan estimate requires factoring in more than just principal and interest. Here is how your true monthly housing payment is calculated.

1. Principal (P)

The portion of your payment that directly pays down the original loan amount borrowed to purchase the home.

2. Interest (I)

The cost charged by the lender for borrowing the money, calculated based on your annual percentage rate (APR).

3. Property Tax (T)

Local county or city taxes assessed on your home's value, collected monthly by your mortgage servicer in an escrow account.

4. Insurance (I + PMI)

Hazard homeowners insurance plus Private Mortgage Insurance (PMI) if your down payment is less than 20%.

Choosing the Right Loan Type

  • Conventional Loan: Best for borrowers with strong credit scores. Put down 20% to avoid PMI entirely.
  • FHA Loan: Backed by the Federal Housing Administration, allows down payments as low as 3.5% with flexible credit requirements.
  • VA Loan: Guaranteed by the U.S. Department of Veterans Affairs, offers 0% down payment and zero PMI for active military and veterans.

How Extra Principal Payments Save Money

In the early years of a 30-year mortgage, the majority of your payment goes toward interest rather than principal.

  • Paying even an extra $100 to $200 per month directly toward the principal reduces compounding interest.
  • This simple strategy can shave 4 to 7 years off your mortgage and save tens of thousands of dollars in interest costs.

Frequently Asked Questions

Common questions regarding mortgage calculations, PMI, interest rates, and loan terms.

A standard monthly mortgage payment consists of PITI: Principal (the borrowed loan amount), Interest (the lender's fee), Property Taxes (local tax assessments held in escrow), and Homeowners Insurance. If your down payment is less than 20% on a conventional loan, Private Mortgage Insurance (PMI) is also added.

PMI (Private Mortgage Insurance) protects the lender in case the borrower defaults. It is required on conventional mortgages when the down payment is less than 20%. Under federal law, lenders must automatically cancel PMI once your loan balance reaches 78% of the original purchase value.

A 30-year mortgage offers lower, more manageable monthly payments because the debt is spread over 360 months, but you pay substantially more total interest over time. A 15-year mortgage requires higher monthly payments but comes with lower interest rates and allows you to build home equity twice as fast.

Any extra amount paid above your required monthly payment goes 100% toward paying down the principal balance. By reducing the principal faster, less interest accrues each month, helping you pay off your home years ahead of schedule.

An amortization schedule is a complete chronological table detailing each monthly payment over the entire life of your loan. It clearly breaks down how much of each payment goes toward paying off interest versus how much reduces your actual principal balance.